The European Commission has adopted a new decision allocating EU Emissions Trading System allowances to airlines for their use of sustainable aviation fuel in 2025. The support is worth about €430 million, split among 130 operators, and comes alongside an estimated €135 million benefit from the zero-rating of SAF on flights covered by EU ETS surrender obligations.
The combined 2025 incentive reaches roughly €565 million and forms part of the framework set out in the 2023 EU ETS Directive. The mechanism is designed to narrow the cost gap between fossil kerosene and eligible SAF, with all airlines treated on the same basis. The scheme began in 2024, when 20 million allowances were reserved for SAF use, and the Commission has since proposed expanding the mechanism by another 110 million allowances. That wider plan would also extend support to electrification and measures to reduce non-CO2 aviation impacts.